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DISPELLING CERTAIN
LIFE INSURANCE MYTHS
Truth behind some of the
common myths
Young people with perfect health do not need life insurance
There are many health conditions like cancer, which do not show any sign initially and are mostly diagnosed at the second stage. And, there is no such assurance that young people do not acquire such dreaded health conditions. Following this myth can make the family susceptible to severe financial adversities.
The insurance offered at my
workplace is sufficient
Most of the employers provide personal accident insurance and health insurance. These types of insurance provide you coverage in case of an accident or in case you need some support when health crisis come over you.
Employers generally do that to provide additional perks to you as part of your salary. So they are really not worried about how is your family going to sustain after you. If some people get life insurance in the workplace, even that is not sufficient enough and buying a separate coverage is a prudent step
Term plan is better as it is cheap
and lets me invest the difference
Term plan is suitable only if you want the
coverage for a fixed tenure. It does not provide
protection for whole life. Of course, you can
invest the difference in a better instrument but
what if the death comes after your term period
has expired?
You will have to forego all that you paid as a
premium unless the plan has the provision of
return of premium.
My growing age will make the life
insurance more expensive
This happens with health insurance and not
with life insurance.
Your responsibilities and your debts and
mortgage amount keep on decreasing with
your age. So it does not become expensive
instead it gets low-priced to buy life insurance
at an old-age
Only the earning-member needs
to have life insurance
Earning-member definitely needs to have a life
insurance cover; however the person taking
care of the family, especially a mother or a wife
carries a substantial life value.
Not only she is managing the tasks at
home, but she is also supporting the earning-
member of the family by providing him/her the
means to carry out the professional
responsibilities
No debts means no life
insurance
Some people perceive life insurance as a tool
to only pay back debts and loans. Besides
paying off the debt-liabilities insurance pays for
funeral bills as well.
Many policies provide benefits while you are
alive as well as you are able to get tax
deductions. Even if three members out of four
in a family are earning, there is an overall
impact on finances when one member is not
there.
Conclusion
Erroneous beliefs like this and more can put
false impression of what life insurance does
and will not let you take advantage of the
benefits it offers. If you are taking care of your
family in any way,
it is important that you take necessary steps to
protect it from potential hardships of life in your
absence. Examine the statements before they
influence your financial decisions and
consequently the lives of your dependants.